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Autori principali: Jinhwan Kim, Hoon Cho, Doojin Ryu
Natura: Artículo Open Access
Pubblicazione: Wiley 2024
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Accesso online:https://onlinelibrary.wiley.com/doi/10.1002/for.3203
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author Jinhwan Kim
Hoon Cho
Doojin Ryu
author_facet Jinhwan Kim
Hoon Cho
Doojin Ryu
Jinhwan Kim
Hoon Cho
Doojin Ryu
collection Wiley Open Access
contents Global Risk Aversion: Driving Force of Future Real Economic Activity Jinhwan Kim Hoon Cho Doojin Ryu Journal of Forecasting ABSTRACTThis study examines how global risk aversion affects future real economic activity (REA). We propose a new international real business cycle (RBC) framework with a stochastic global risk aversion spillover process by extending the RBC model. Our model suggests output competition and risk aversion spillover as two influence channels of global risk aversion. We extract relative risk aversion factors and evaluate the significance of changes in the level of global risk aversion for forecasting. Our findings suggest that changes in the level of global risk aversion significantly drive the business cycle of open economies. A global risk aversion factor predicts a domestic country's future REA at least as well as the domestic risk aversion factor does. The impact of global risk aversion can vary depending on a country's relative productivity. 10.1002/for.3203 http://creativecommons.org/licenses/by-nc-nd/4.0/
doi_str_mv 10.1002/for.3203
format Artículo Open Access
id wiley_oa_10_1002_for_3203
institution Wiley Open Access
license_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
publishDate 2024
publisher Wiley
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spellingShingle Global Risk Aversion: Driving Force of Future Real Economic Activity
Jinhwan Kim
Hoon Cho
Doojin Ryu
Journal of Forecasting
Global Risk Aversion: Driving Force of Future Real Economic Activity Jinhwan Kim Hoon Cho Doojin Ryu Journal of Forecasting ABSTRACTThis study examines how global risk aversion affects future real economic activity (REA). We propose a new international real business cycle (RBC) framework with a stochastic global risk aversion spillover process by extending the RBC model. Our model suggests output competition and risk aversion spillover as two influence channels of global risk aversion. We extract relative risk aversion factors and evaluate the significance of changes in the level of global risk aversion for forecasting. Our findings suggest that changes in the level of global risk aversion significantly drive the business cycle of open economies. A global risk aversion factor predicts a domestic country's future REA at least as well as the domestic risk aversion factor does. The impact of global risk aversion can vary depending on a country's relative productivity. 10.1002/for.3203 http://creativecommons.org/licenses/by-nc-nd/4.0/
title Global Risk Aversion: Driving Force of Future Real Economic Activity
topic Journal of Forecasting
url https://onlinelibrary.wiley.com/doi/10.1002/for.3203